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Ardmore Shipping (ASC) Stock Sinks As Market Gains: Here's Why

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In the latest trading session, Ardmore Shipping (ASC - Free Report) closed at $11.70, marking a -3.15% move from the previous day. This change lagged the S&P 500's daily gain of 0.37%. Meanwhile, the Dow experienced a drop of 0.14%, and the technology-dominated Nasdaq saw an increase of 0.71%.

Shares of the shipping company witnessed a gain of 0.33% over the previous month, trailing the performance of the Transportation sector with its gain of 1.91%, and the S&P 500's gain of 4.26%.

Investors will be eagerly watching for the performance of Ardmore Shipping in its upcoming earnings disclosure. The company is expected to report EPS of $0.28, down 49.09% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $43.64 million, indicating a 29.09% decrease compared to the same quarter of the previous year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.2 per share and a revenue of $191.59 million, representing changes of -57.75% and -29.86%, respectively, from the prior year.

Investors should also pay attention to any latest changes in analyst estimates for Ardmore Shipping. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. At present, Ardmore Shipping boasts a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Ardmore Shipping has a Forward P/E ratio of 10.07 right now. This indicates a discount in contrast to its industry's Forward P/E of 11.42.

The Transportation - Shipping industry is part of the Transportation sector. At present, this industry carries a Zacks Industry Rank of 59, placing it within the top 24% of over 250 industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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